Again, Access Bank acquires Standard Chartered Bank

Roosevelt Ogbonna, Group Managing Director of Access Bank Plc (l), and Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered, Signing the Agreement in London, UK

By allcitynews.ng

That Access Bank, on April 1, 2019, merged with Diamond Bank, may no longer be news to everyone.

But the fresh news now, is that it has again finalised its readiness to buy Standard Chartered Bank subsidiaries in five African countries.

By this, the bank has not only acquired nine banks within 10 years spending over $285 million for the acquisitions but is most likely to become one of the strongest banks in Nigeria in the nearest future.

That merger with Diamond Bank was a survival policy introduced due to the challenges which plagued the banks including low capital base, liquidity and poor asset quality that time. Hence, they were consequently forced to merge in order to survive the recapitalization process.

As Access Bank, a multinational commercial bank founded in 1989, has emerged as the best commercial bank in Nigeria in 2023, with this latest acquisition could be one of banks that could have solidified operating system in the country.

It would be recalled that Access Bank’s total assets rose to N15 trillion in December 2022, up 27.9 per cent from N11.

Access Bank management has either merged, like it did with Diamond Bank now go into outright buying thereby spending over $285 million for the acquisitions.

Access Bank, a wholly owned subsidiary of Access Holdings Plc {“Access Corporation”} is a leading full-service commercial bank operating through a network of more than 700 branches and service outlets, spanning three continents, 17 markets and 52 million customers.

However, according to report, this latest transaction remains subject to the approval of the respective local regulators in the African countries, and the banking sector regulator in Nigeria.

Standard Chartered disclosed the development Friday, July 14, 2023, at its Headquarters in London, United Kingdom (UK), in the presence of senior representatives from both banks.

Both Sunil Kaushal, Regional CEO, Africa & Middle East, Standard Chartered, and Roosevelt Ogbonna, Group Managing Director (GMD) of Access Bank Plc, were said to have signed the transaction agreement at the meeting.

Activating provisions of transaction agreement

The latest agreement with Access Bank for the sale of the bank’s business in Sub-Saharan Africa is in line with Standard Chartered’s global strategy, aimed at achieving operational efficiencies, reducing complexity, and driving scale.

In actualising the agreement, Access Bank is expected to offer a full range of banking services and continuity for key stakeholders, including employees and clients in the Standard Chartered businesses across the five aforementioned countries.

Access and Standard Chartered Banks will work closely together in the coming months to ensure a seamless transition, with the transaction expected to be completed over the next 12 months, according to report.

Speaking on the  agreement with Access, Kaushal of Standard Chartered, said: “Following on the announcement we made in April last year, the project is now substantially completed with the announcement for the sale of the five markets, and the furtherance of a partnership with Access Bank.

“This strategic decision allows us to redirect resources within the AME region to other areas with significant growth potential, ultimately enabling us to better support our clients.”

He also stated: “We look forward to working closely with Access Bank’s team over the coming months to achieve a successful conclusion to this transaction while safeguarding the interests of our valued clients and prioritising our employees.”

On his own remark, Access Bank Group Managing Director, Roosevelt Ogbonna, said: “We’re focused on building strong global franchise.

Furthermore, Ogbonna, while explaining more on the agreement with Standard Chartered Bank, pointed out that: “We are pleased to sign this agreement today and express our appreciation for being selected as the preferred partner to Standard Chartered Bank through this transaction, in which it is exiting four African markets and refocusing in one.

“As a distinguished regional and international bank with a rich heritage spanning over 150 years, Standard Chartered Bank has built a solid presence in these markets for over 100 years.”

Additionally, the Access Bank GMD noted that as far as the financial institution is concerned, the strategic transaction with Standard Chartered represents a key step in its journey to build a strong global franchise focused on serving as a gateway for payments, investment, and trade within Africa and between Africa and the rest of the world.

This is anchored by a robust capital base, a relentless focus on execution, and best-in-class customer service and governance structures, Ogbonna said.

He further stated: “At Access Bank, we are committed to reshaping the global perception of Africa and African businesses, even as we continue to build toward our vision to be the World’s Most Respected African Bank.

“Our 5-year growth plan will see us build a world-class class payments gateway leveraging the power of technology and supported by a dynamic ecosystem of local and international partnerships, enabling us to serve global payments and remittances efficiently.”

The Group Managing Director of the bank said: “With our recent European expansion and our deepened presence in key trading corridors across Africa, we will bridge the gap between cross-border and domestic transfers across all business segments.

“More importantly, we are committed to impacting our host communities positively.”

It is would be recalled that Standard Chartered, in April 2022, strategically decided to divest from a number of markets, namely Lebanon, Angola, Cameroon, Gambia, Sierra Leone, Zimbabwe and Jordan, and to exit the Consumer Private and Business Banking (CPBB) business in Côte d’Ivoire and Tanzania.

The financial institution as well announced the sale of its business in Zimbabwe earlier June last year, and in Jordan March this year.

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